What's Happening?
Direct-to-consumer (DTC) brands like Mejuri, Beyond Yoga, and Coterie are increasingly turning to physical retail stores to complement their online presence. Mejuri, a jewelry brand, has expanded to 55
locations, finding that in-store purchases often attract new customers. Beyond Yoga, an activewear brand, has doubled its store footprint since being acquired by Levi's, responding to consumer demand for direct brand interaction. Coterie, a diaper brand, has leveraged wholesale partnerships with retailers like Whole Foods to reach more customers. These brands are finding that physical stores enhance customer loyalty and lifetime value.
Why It's Important?
The shift towards physical retail by DTC brands underscores the enduring value of in-person shopping experiences. Despite the rise of e-commerce, many consumers, particularly Gen Z, prefer to see and feel products before purchasing. This trend highlights the importance of omnichannel strategies in retail, where online and offline experiences are integrated to maximize customer engagement. For DTC brands, physical stores not only drive sales but also serve as powerful marketing tools that build brand loyalty and attract new customers.
What's Next?
As more DTC brands explore brick-and-mortar options, the retail landscape may see a resurgence of physical stores, albeit with a modern twist. These stores are likely to focus on experiential retail, offering unique in-store experiences that cannot be replicated online. Retailers may also invest in technology to enhance these experiences, such as virtual try-ons or personalized shopping services. The success of these strategies could influence other online-first brands to consider similar expansions.
